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TSMC’s third-quarter profits rise by 13.5%, beats market expectations

TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) has reported a 13.5% rise in third-quarter profit on Monday, its strongest growth rate since march of 2017, as the demand for the 5G chips will boost the sales, in spite of the fears of a global tech slowdown.

The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is to look at an investors’ conference in Taipei, Taiwan, 13 April, 2017. REUTERS/Tyrone Siu

The world’s largest contract chipmaker has shrugged off those concerns, as a result of a long-term US-China trade war-such as TSMC’s high-performance chips will be in demand for smart phones and fifth generation telecommunications (5G) technologies.

TSMC, whose clients include Apple, Qualcomm Inc and to Smartphone, said July-September profit was$101.07 billion euros ($3.30 billion).

That is, in comparison with a$96.33 billion, the average forecast taken from 20 analysts, according to the Refinitiv of the data.

Sequentially, sales increased 10.7%, to $9.4 billion, compared with its own estimate of $9.1 billion to $9.2 billion.

The new smartphone launched ahead of the end-of-the-year shopping season, as well as the increasing demand for new technologies, such as 5G, and the use of artificial intelligence, what you can do to boost sales for TSMC’s high-performance chips, it is known as 7nm, the analysts said.

“The power that supports our vision is that 5G will be driving TSMC to speed up the growth of the orbit, due to the need for leading-edge technology,” Sanford C. Bernstein analyst Mark Li wrote in a note before the earnings announcement.

Smartphone makers, including Samsung Electronics Co Ltd and Huawei are in the race to develop phones with 5G technology, which can be up to 100 times faster than current 4G networks.

Li said that strong demand from smartphone makers such as Apple and Huawei’s HiSilicon able to support the growth in the fourth quarter of the year.

TSMC’s shares have risen 28% so far this year.

Reporting By Yimou Lee; editing by Jane Wardell and Darren Schuettler

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